Can loans affect my benefits?

liannalondon

I am unable to work and on the non work related ESA also DLA. My dad has loaned me some money over the past few months for home improvements such as a gate, fencing, burglar alarm (I was burgled and it has aggravated my ptsd), replacing dangerous flooring (I slipped when it was wet and broke a rib) etc, also for counselling for my ptsd which I cannot get through the nhs here. He is 87 and does not want to have to write numerous cheques to different people. He said to pay me back 'as and when' I can. This work would have all been completed by now but I suffered 2 bereavements within weeks of each other which exacerbated my already fragile mental state. I had no idea this would be a problem until the dwp contacted me about a compliance visit. It was only then that I found out I should have below £6,000 in my account and the loan has pushed my account above £6,000. I have to show the DWP my bank statements and I am panicking. I have a statement from my dad and also quotes from the people doing the work, but I am worried the DWP will take money back for all the time my account has been above £6,000. I already have to pay £40 a month of my benefits as they do not cover all my (interest only) mortgage payments.
I am so anxious about this visit even though I will have a friend to support me and as far as I knew I had done nothing wrong. What are my rights?

merlin68

Your rights are that savings between £6000 and £16000 affect your benefits.Why didnt you get him to give you £2000 a time then it would have been fine.

[Deleted User]

over 6k and you lose £1 for every £250 you have unto a max of £16k,so how long has your account been over 6k,and how much over?

liannalondon

My original letter was so misleading that I thought I was on contribution based ESA. It actually said 'The payment of esa is based on your NI contributions and any additional amount the law says you need to live on'. It was only when I rang the compliance officer in a state that he said I am actually on income based. So I had no idea this would be a problem.

liannalondon

I'm hoping I will be ok because I just found this online

The following do not count as savings:

the value of any property occupied by some who is a 'close relative' if they have reached pension credit qualifying age or are 'incapacitated'
the value of a property for up to 26 weeks if you have acquired it to live there, you are trying to sell it, you are carrying out essential repairs or alterations in order to live there, or you are taking legal advice so that you can live there
the value of a former home for up to 26 weeks if you have left because of a relationship breakdown (or indefinitely if your former partner lives there and is a lone parent)
sale proceeds of your home for up to six months if you intend to buy another home
money from insurance claims for up to six months if used to replace or repair
money such as a loan or grant to pay for essential repairs or improvements

HB58

Do you have any documentation from your father to say that 1) this was a loan not a gift and 2) that it was for essential maintenance for your property? It would be better if anything you produce were dated to when the 1st amount was given.

liannalondon

he's writing a letter to them. I have to show 6 months of bank statements so they can see when the cheques came in. Plus at the time I believed I was on contributions based esa. Who knows, maybe I am and they made yet another error.

tomtontom

As you are receiving help with your mortgage you are definitely receiving IB ESA.

allen35

if you are receiving help with the mortgage it is income related and if you receive more than £108.15 pw it is income related (means tested)

liannalondon

it's a shame the dwp never made that clear to me or I would not have been in this mess. Everyone I've shown that letter to said they would assume I was on contribution based. Thought it was just my ADD.

tomtontom

liannalondon wrote: »

it's a shame the dwp never made that clear to me or I would not have been in this mess. Everyone I've shown that letter to said they would assume I was on contribution based. Thought it was just my ADD.

It is pretty clear to me - the word and indicates you are receiving something in addition to CB ESA.